Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Envista (NVST)
Rolling One-Year Beta: 1.16
Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.
Why Do We Steer Clear of NVST?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Negative returns on capital show that some of its growth strategies have backfired, and its decreasing returns suggest its historical profit centers are aging
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Envista is trading at $21.32 per share, or 19x forward P/E. To fully understand why you should be careful with NVST, check out our full research report (it’s free).
Two Stocks to Watch:
AMD (AMD)
Rolling One-Year Beta: 1.97
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Are We Positive On AMD?
- Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 22.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 32% annually over the last five years and easily exceeded the peer group average
At $150.01 per share, AMD trades at 30.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Broadcom (AVGO)
Rolling One-Year Beta: 2.30
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Will AVGO Outperform?
- Annual revenue growth of 30% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 76.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Broadcom’s stock price of $332.41 implies a valuation ratio of 43.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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